Final Saugus audit critical of Bisignani

SAUGUS – The third and final audit of Saugus’ finances has uncovered “systematic, knowledgeable and intentional violation of the municipal procurement laws ?” that led to “misleading and fraudulent accounting,” according to the audit from Powers & Sullivan.The audit looked into bidding and purchasing issues, and detail violations with the purchase of town vehicles along with construction, maintenance and landscaping jobs totaling more than $700,000 from 2008 to 2012.The audit blames former Saugus Town Manager Andrew Bisignani for many of the issues.Read the audit.”It is important to reiterate that the Town Manager is the CFO, CEO and Chief Procurement Officer for the Town of Saugus. The internal protocols ? were approved or established by him,” the audit says in its conclusion. ” ? We saw evidence and were informed that the previous former Town Manager used language stating that he was authorizing non-compliance to procurement practices and/or payments to vendors without issuing a purchase order for reasons, such as, he wanted to save the Town money or he wanted a particular vendor to have the lowest quote. It is apparent, based on the evidence we reviewed, that these significant financial violations of laws and regulations was an effort to intentionally cover up the actual nature of the transactions with full knowledge that they were actual violations.”The audit also outlines $1.3 million in procurement of goods and services and public works construction that “were not in compliance with Massachusetts Procurement Laws.”Among the transactions mentioned in the audit are the purchase of seven vehicles from Brother’s Auto Body in Revere totaling $92,000; hazardous waste removal totaling $121,000; and $100,000 in water system and hydrant related supplies.Powers & Sullivan has been conducting a forensic audit into Saugus’ books since February. The first part of the audit details $1.4 million in general fund-related payroll and expenses being charged to water and sewer accounts and was released in April. The second part of the audit was released in May and outlined $160,000 in “questionable” payroll expenses.Bisignani defended his actions Thursday.”As with the previous audit reports, I was never given the opportunity to discuss or explain to the auditor or author of the report any of the issues as presented which are presented out of context and are factually incorrect,” said Bisignani. “Documentation according to the regulations was available for all relevant expenditures. This report is opinionated ? These are blanket accusations, which I feel are totally unfair and they’re politically motivated.”Selectmen Chairman Michael Serino called the audit results “disheartening” and said he wants to see the town “move forward.””It’s still being investigated by the (Inspector General’s) office and I’m confident that if there’s anything significant that they feel needs to be done they’ll do it,” said Serino. “And I have confidence that the new Town Manager won’t operate the town like this.”Selectmen Vice-Chairman Steve Castinetti and Selectmen Debra Panetta and Stephen Horlick wanted more time to read the audit and declined to comment.The audit states that in “most instances” the Town Manager would already have a quote in hand from Brother’s Auto Body before the purchasing assistant started the bid process.Bisignani, however, said that was “absolutely not true.””Proposals were submitted for publicly advertised vehicles,” said Bisignani. “I went to Town Meeting and requested a transfer and there was a healthy debate. People got up and spoke in favor of purchasing salvage vehicles. In all cases they were inspected by the departments and the town mechanic.Bisignani also said it’s “absurd” that the audit says he instructed the purchasing assistant to obtain quotes higher than Brother’s Auto Body.”I don’t know what she meant by those comments,” said Bisignani. “I never said any such thing. I categorically deny the statement made from the purchasi